An affiliate program plays an important role when it comes to marketing blockchain projects and raising funds – but the mere establishment of an affiliate program is not enough. All marketing efforts must be constantly monitored and this means setting Key Performance Indicators most commonly known as KPIs. Here’s how to do this!
Need for KPIs
Technological advancements have made affiliate marketing more powerful than ever before. Managers now have the ability to track each and every conversion or sale and keep a close eye on the performance of each affiliate and their actions with the help of KPIs.
Some Important KPIs that Should Be Monitored Regularly
Effective monitoring of an affiliate program is possible by setting KPIs that provide a clear and correct picture of its effectiveness, while highlighting any negatives or weak points. Here are some KPIs that should be monitored regularly:
- Number of Active Affiliates: While you may have many affiliates in your program, it’s important to know who is the most active at generating leads as this will help you to guide them into becoming even more successful. Similarly, knowing your affiliates will also allow you to identify those who aren’t producing great results and encourage them to get back on the right path.
- Number of New Affiliates Approved: This is a clear indication of the popularity of the project or product being marketed. So, if the number of new affiliates is growing, it could be an indicator of the growing demand for the project.
- Percentage of New Customers: This is an important KPI that tells us about the performance of the affiliate marketing program and its success.
- Average Order Value or Investment Value: This indicator provides insight into the success of an affiliate program by providing information on how much customers or the target audience willing to invest.
- Percentage of Affiliate Sales over Overall Sales: This gives an idea about the effectiveness of the program and potential changes that could improve its efficiency.
- Year on Year Growth: Growth in sales, investments or profits can be a key indicator of the success of a marketing program.
- Percentage of Coupon and Content Affiliates: Both categories of affiliates are important for building sales. There should be a balance between the two types of affiliates for best results.
- Return on Ad Spend: Is the amount spent on advertising to get new clients yielding results? This can be verified by calculating the ‘return on ad spend’.
- Non-monetary KPIs: These include comments, shares and likes on social media, as well as buying intent metrics, such as store locater and shopping basket activity. These KPIS are important in understanding the role of one’s affiliate marketing program.
So, identifying and setting the right KPIs to measure the performance of your affiliate marketing system allows your business to provide a larger and more accurate picture regarding the effectiveness of each affiliate and their role in generating new sales. You can easily identify those who are doing well from those who may need a bit more guidance.